January 27, 2025

Vietnam's Livestock Department proposes cutting tax rate for imported soybean meal used as feed

The Livestock Department under Vietnam's Ministry of Agriculture and Rural Development on January 22 proposed to reduce the tax rate for imported soybean meal used as animal feed from 2% to 1%.

The proposal was made after the department received letters from the Dong Nai Livestock Association and businesses that produce and import animal feed, expressing their concerns about the tax rate, which was regulated in the Government's Decree 144 issued on November 1, 2024.

According to the decree, soybean meal used as animal feed is subject to a tax rate of 2% for crude powder, and 1% for fine powder, pellets, blocks, and bars.

However, according to the Livestock Department, in essence, the product is still soybean meal. The form of the product does not alter its characteristics, nature or function.

The department is therefore proposing that the products – classified under the Harmonisation System (HS) codes of 2304.00.29 and 2304.00.90 – be granted a tax rate of 1%.

The move aims to support and strengthen the domestic livestock industry and animal feed production.

The proposal was sent to the General Department of Vietnam Customs.

— Vietnam News/ANN